11. Bargain Wholesalers sells pet supplies to retailers including Pet World Supplies. Bargain Wholesalers uses a perpetual

inventory system.

May 4, Bargain Wholesalers sells inventory to Pet World Supplies for $33,000 with terms 1/10, n/30. The cost of the

merchandise is $23,020.

Record the journal entries on May 4.

13. On December 1, $240,000 was received for a service contract to be performed from December 1 through November 30.

Assuming the work is performed evenly throughout the contract period, prepare the adjusting journal entry

on December 31.

14. Equipment was acquired at the beginning of the year at a cost of $200,000. The equipment was depreciated using

the straight-line method based on an estimated useful life of 5 years and an estimated residual value of $0.

The equipment was sold at the end of the fourth year for $30,000,

Record the journal entry for the sale.